Private housing in Kuwait consumes up to 40 percent of the overall energy per year, amounting to 48 billion (kWh), the investment sector (residential apartments) 20 percent, a recent study shows. It further indicates that the commercial sector five percent, the government sector 18 percent, the industrial sector six percent, the agricultural sector six percent, chalets and stables and others five percent.

Furthermore, the study shows that the private housing sector consumes 43 percent of the annual water output, amounting to 140 billion gallons, the investment sector 22 percent, the commercial sector six percent, the government sector 11 percent, the industrial 10 percent, the agricultural two percent, chalets, stables and others six percent. Kuwait is one of the top GCC countries in terms of power and water consumption, however the bills are the lowest in the region.

According to the study, electricity consumption in Kuwait amounted to 48 billion kilowatt-hours (kWh) in 2015, amid forecast it will soar by three times in the 2016-2017 period, to 64 billion (kWh) by 2020, some 86 billion (kWh) in 2025, 115 billion (kWh) 2030 and 154 billion by 2035. Kuwait’s water production, which reached 140 billion gallons in 2015, is projected to jump to 187 billion gallons in 2020, 251 billion gallons in 2025, 335 billion gallons in 2030 and 449 billion gallons in 2035.

Production costs

Annual costs of power and water production was estimated in the study at KD 2.66 billion, including KD 2.45 billion worth of government subsidies. Revenues reached KD 210 million. These costs are projected to leap to KD 3.56 billion in 2020, state share of which is in the range of KD 3.279 billion with income estimated at KD 281 million.

The annual costs, in 2025, are predicted to be at KD 4.76 billion, State share of which stands at KD 4.38 billion, with returns at KD 376 million. But the costs will jump in 2030 to KD 6.37 billion with the Kuwaiti stake at KD 5. 87 billion in contrast with KD 673 million worth of paid bills.

In case consumption is rationalized by 20 percent, up to KD 1.030 billion for the fiscal year 2016-2017 will be saved. The saving will reach KD 1.092 billion in the coming fiscal year and to KD 1.157 billion in the 2018-2019 fiscal year.

Annual saving will amount to some KD 1.22 billion in the 2019-2020 fiscal year, KD 1. 3 billion in the 2020-2021 fiscal year and will gradually increase to reach KD 2.94 billion in the 2025-2034 fiscal year, according to the study which forecast saving at KD 35 billion worth of the subsidy sums from 2017 to 2035.

No option

The study concludes by suggesting that Kuwait currently has no option other than proceeding with economic reforms due to soaring power and water consumption, population growth and development schemes, and this need has become more potent as a result of bearish oil prices and reckless consumption of the energy resources.

In this context arises necessity of educating the society, individuals and institutions, about rationalizing the energy consumption; that is through, partly, ongoing awareness campaigns.